Mar 03
The Securities Exchange Commission (“the Commission”) has filed an amicus brief clarifying that whistleblowing employees should be protected under the Dodd-Frank Wall Street Reform and Consumer Protection Act even if their whistleblowing report was only internal. In its brief, the Commission stated that it “interpreted the anti-retaliation protections to extend to any individual ho engages …
Permanent link to this article: https://betweenthenumbers.net/2014/03/sec-defends-internal-company-whistleblowers/
Feb 28
The Federal Trade Commission (“FTC”) released the agency’s Consumer Sentinel Network Data Book 2013, which summarized consumer complaints. There were over 2.1 million complaints reported in 2013. The following table summarizes the top ten types of complaints filed in 2013: Category No. of Complaints Identity Theft 290,056 Debt Collection 204,644 Bank and Lenders 152,707 …
Permanent link to this article: https://betweenthenumbers.net/2014/02/identity-theft-tops-consumer-fraud-list/
Feb 26
The IRS has released its Annual Business Report for 2013, detailing its investigative priorities and accomplishments during the year. In terms of priorities, the focus has been on the following areas: Identity Theft Fraud Return Preparer Fraud & Questionable Refund Fraud International Tax Fraud Fraud Referral Program Political/Public Corruption Organized Crime Drug Enforcement Task Force …
Permanent link to this article: https://betweenthenumbers.net/2014/02/irs-reports-its-investigative-wins/
Feb 18
The Auditing Standards Board (“ASB”) has issued its Statement on Auditing Standards (SAS) No. 128, “Using the Work of Internal Auditors”. SAS 128 defines the external auditor’s responsibilities in situations where they are (a) using the work of the internal audit function to obtain audit evidence or (b) using internal auditors to provide direct assistance …
Permanent link to this article: https://betweenthenumbers.net/2014/02/auditing-standards-board-provides-guidance-for-reliance-on-internal-auditors/
Feb 05
When a financial restatement is necessary, it is not surprising that investors will take some time to regain trust and give full credit to future earnings announcements. A recent study, developed through a collaboration of professors from Singapore Management University and Boston College, suggests that the three quarter rebuilding period described in prior research may be …
Permanent link to this article: https://betweenthenumbers.net/2014/02/recovering-investor-confidence-after-a-restatement/
Jan 17
The definition of a whistleblower and the criteria for reliance on associated protections has been the subject of a number of recent cases. In these matters, the reporting method has been the determining factor in whether and what protections are available. A case heard by the First Circuit U.S. Court of Appeals had provided an …
Permanent link to this article: https://betweenthenumbers.net/2014/01/when-is-a-whistleblower-not-a-whistleblower/
Jan 09
A recent story in the Los Angeles Times describes how DWP Union Chief Brian D’Arcy did not attend a scheduled meeting with auditors trying to investigate the spending of over $40 million in ratepayer money by two nonprofits he co-manages. The Joint Training Institute and the Joint Safety Institute were established to foster better relations between managers …
Permanent link to this article: https://betweenthenumbers.net/2014/01/dwp-union-chief-avoids-meeting-with-auditors/
Dec 18
Bit Coins are increasingly in the news. Denise Lugo of Bloomberg BNA describes “Bit Coins” as: a type of virtual currency, which loosely put, is created when a complex mathematical algorithm is solved using high power computers. It seems like overnight bit coins have become legitimate.” Ms. Lugo also summarized the FASB’s recent position at a …
Permanent link to this article: https://betweenthenumbers.net/2013/12/no-gaap-yet-for-bit-coins/
Dec 17
E&Y just settled the Lehman Brothers class action against them for $99 million. It made little news. The 2008 Lehman Brothers bankruptcy was at least partially caused by accounting malfeasance. This article describes the bankruptcy examiner’s report on this wrongdoing. Arthur Andersen was entirely destroyed for a bad audit of Enron that was no worse …
Permanent link to this article: https://betweenthenumbers.net/2013/12/ernst-young-gets-settlement-deal-of-the-decade/
Dec 10
A recent study reported in the American Accounting Association’s The Accounting Review suggests that in many cases the relationship between the the top executive and the respective audit committee members may be too comfortable to achieve truly independent oversight. The study found that approximately 40 percent of the 2000 companies analyzed have committee members who are socially …
Permanent link to this article: https://betweenthenumbers.net/2013/12/audit-committee-members-and-ceos-too-close-for-comfort/
